The South Korean conglomerate, Samsung is soon going to adapt Blockchain technology to manage its vast global supply. The company sends about tens of billions of dollars in goods globally and in order to keep track of these shipments, they are considering the blockchain ledger system.
Post adopting the blockchain ledger system, the company expects the shipping cost can go down by 20 percent. While blockchain is adopted by organizations and governments worldwide, Samsung Group is one of the first global manufacturers to include blockchain distributed ledgers in its operations.
Blockchain can considerably reduce the time required to send the paperwork back and forth and to coordinate with the port authorities. According to International Business Machines Corporations, the cost of documentation for container shipment are more than twice as big as the cost of transportation. Samsung SDS is expected to handle 488,000 tons of air cargo and 1 million 20-foot-equivalent (TEU) shipping units in 2018. To cut down the massive shipping cost, the company is likely to incur, the Blockchain Chief at Samsung SDS Co., Song Kwang-woo has suggested the use of blockchain technology.
A blockchain distributed ledger would not only help in smoothening the shipping process but also considerably reduce the time gap between the launch of a Samsung product to when the actual shipments begin. With the time lag gone, Samsung will be able to fend off competition and stay ahead in the game specifically in emerging markets like China. Blockchain as a technology offers transparency and security and is also immune to hacking.
The transaction between parties are stored on blockchain ledger using cryptography and this saves tremendous security costs. The impact of blockchain as a technology in the business world has been limited so far however, Gartner Inc. predicts the rise of blockchain related businesses and a market acquisition of $176 billion of value by 2025.